Market Update - Nov 17th '09

So far, so good... ES climbed as expected to hit resistance level around 1110 where it started retracing. Erosion to ~1100 would be normal (Fib/MM), and although improbably to the next Fib levels. The daily chart still looks very bullish but may be losing steam and even stall ahead of the 1125 target. ES will at least try and give it a go in the next couple of days. The weekly chart is looking at peaking soon, so the context is known and understood. Providing this is in line with your trading style, lower time frames (15mins and 30mins) will be easier to trade.

TF reached the 2nd Fib expansion target (602), i.e. a little higher than expected. It is now more hesitant ahead of stall level (605) and strong resistance (609). If TF carries on leading, it should try and take both indices a tad higher, but certainly with increasing difficulty.

EURUSD was a little spiky yesterday, with larger players out there to clean out the book. €/$ briefly hit the resistance level on 1.501 again to then lose a bit of ground. Hesitation can help keep prices in current high range nicely delimited by both high and low spikes yesterday, but there are more and more signs of exhaustion going forward.

( posted 5:50 AM UK )